CMG
Home / Refinance / Conventional refinance

Refinance

Same loan type. Better terms, if the math works.

A conventional refinance can lower your rate, shorten your term, or remove PMI once you've built enough equity — we'll show you the real numbers before you commit.

Start my application Call (773) 354-3135

What is a conventional refinance?

Replacing your loan on better terms

A conventional refinance replaces your existing mortgage with a new conventional loan, ideally at better terms — a lower rate, a shorter term, or simply the removal of PMI once you've crossed the equity threshold to no longer need it. It follows the same Fannie Mae and Freddie Mac underwriting standards as a conventional purchase loan, just applied to a refinance transaction.

Common reasons to refinance conventional

Lower your rate

If rates have dropped since your original loan, refinancing can meaningfully reduce your monthly payment and lifetime interest cost.

Remove PMI

Once you've reached roughly 20% equity, refinancing (or requesting PMI removal) eliminates that monthly cost.

Shorten your term

Move from a 30-year to a 15 or 20-year term to build equity faster and reduce total interest paid.

Switch from an ARM to fixed

Lock in payment certainty if your adjustable-rate mortgage is approaching its adjustment period.

What we'll look at together

  • Your current rate versus today's market rate
  • How long you plan to stay in the home (break-even analysis)
  • Your current loan-to-value and whether PMI removal applies
  • Closing costs versus your monthly savings
  • Whether a rate-and-term or cash-out structure fits your goals
CMG

Refinancing, honestly

When it makes sense — and when it doesn't

Advantages

  • Can meaningfully lower your monthly payment
  • Removes PMI once you've built sufficient equity
  • Shortening your term builds equity and saves interest long-term
  • No upfront mortgage insurance premium like FHA refinances carry

Considerations

  • Closing costs apply, so the math needs to actually pencil out
  • Resetting your term can extend your overall payoff timeline
  • Requires sufficient equity, especially for cash-out structures
  • Not worthwhile if you're planning to move in the near term

Conventional refinance questions

What homeowners ask us most

How do I know if refinancing is actually worth it?
We'll run a break-even analysis comparing your closing costs against your monthly savings, so you can see exactly how many months it takes to come out ahead — and decide if that timeline fits your plans.
Can I remove PMI without a full refinance?
Sometimes, yes — if you've reached roughly 20% equity, you may be able to request PMI removal directly from your current servicer with a new appraisal, without a full refinance. We're happy to talk through both paths.
Is there a minimum time I need to wait after my original loan?
Conventional refinances don't generally have a mandatory waiting period like some government-backed streamline programs, though your specific situation may have lender overlays worth discussing.
What's the difference between rate-and-term and cash-out refinancing?
A rate-and-term refinance simply changes your rate or term without taking out additional cash. A cash-out refinance lets you access home equity as cash, typically at a slightly higher rate.

Let's see if refinancing makes sense for you

Send Patrick your current rate and loan details — he'll show you real numbers before you decide anything.

Start my application → Call (773) 354-3135